At an investment seminar on Rio’s copper and energy divisions yesterday, Rio energy chief executive officer Doug Ritchie said the rising capital expenditure cost at Kestrel was 20% due to inflation, 50% due to foreign exchange-related expenses and 30% due to delays and “scope creep”
Production from the additional Kestrel Mine Extension project capacity was expected to start in 2013, Ritchie said.
The KME project is expected to extend the life of the longwall mine to 2031 and increase production to an average of 5.7 million tonnes per annum.
